How budget obsession can take the value out of events

Budget pressure. This year, as we saw in the market study, it is time to fight for budgets. On the one hand, costs have risen and (at least for hoteliers) will rise even more this year. On the other hand, companies are savings machines and repeat that “this year we are doing a little more than last year but with less budget”. A ritual that can be tiring (and seems absurd in an inflationary context) but is an absolute reality. As a result, we are expecting a year of many events but with a lot of budget fights.

How has “this year we are doing a little more but with less budget” become so ubiquitous?

…, which causes us a lot of headaches. Here comes the cycle of poverty: if you become obsessed with getting by, it becomes difficult to think well, to build for the future. A brand present at MIS commented to me: “Eric, I spend all day looking for options to fit our budget”, and this phrase (which applies to both brands and agencies) has to make us think. All this time looking for a cheaper hotel or negotiating with the audiovisual company, is not dedicated to work well, to think about the event strategy, to take care of the narrative, the messages.

If you become obsessed with getting by, it becomes difficult to think and build for the future.

Time lost. All this work is time wasted. In our latest market research, we see hotel confirmation rates going down, illustrating that organizers are “shopping around” to try to find a cost-effective solution, and it costs them more to confirm. And this is simply time wasted for everyone in the value chain, and not invested in the strategy.

The risk: removing value-added factors. The lack of budget threatens to focus the event and its contracting on the essential. Yes or yes, you will hire a hotel, audiovisual equipment and transportation. But a speaker who will add value? A real moderator who will bring out the best in the debates? A technology that will allow you to capture data? No: what is dispensable in your event may be what brings the most value. It could be that the first 80% of the budget is logistics, which is necessary but does not add much value. And the last 20%, which is expendable if you don’t have time or money, is what really adds value. An event with a tight budget often becomes a “logistical union minimum”.

What is dispensable at your event may be what adds the most value

Obviously, the solution cannot be an open bar; budgets have their limits. But yes, we have to think about one thing when we organize events: how much time do I invest in strategy, creativity, and how much do I invest in managing the budget? Am I a victim of the cycle of poverty, am I trying to get ahead or build something big? Maybe doing fewer events, or smaller events, but with a larger budget, is the best decision you can make?